*this is a guest post from Kim Fleischman, one of our preferred mortgage specialists.

Just signed and sealed...a $787 Billion Stimulus Plan

made up of tax cuts and
spending programs aims at reviving the US economy. Although the package was
scaled down from nearly $1 Trillion, it still stands as the largest
anti-recession effort since World War II.

Home owners and potential
homebuyers stand to gain from key provisions in this stimulus plan. Here is what
we know as of today...

________________________________

Tax Credit
for Homebuyers

First-time homebuyers who purchase homes from the start of
the year until the end of November 2009 may be eligible for the lower of an
$8,000 or 10% of the value of the home tax credit. Remember a tax credit is
very different than a tax deduction - a tax credit is equivalent to money in
your hand, as opposed to a tax deduction which only reduces your taxable
income.

The tax credit starts phasing out for couples with incomes above
$150,000 and single filers with incomes above $75,000. Buyers will have to
repay the credit if they sell their homes within three
years.

________________________________Additional Housing-Related
Provisions

Tax Incentives to Spur Energy Savings and Green Jobs -- This
provision is designed to help promote energy-efficient investments in homes by
extending and expanding tax credits through 2010 for purchases such as new
furnaces, energy-efficient windows and doors, or insulation.

Landmark
Energy Savings -- This provision provides $5 Billion for energy efficient
improvements for more than one million modest-income homes through
weatherization. According to some estimates, this can help modest-income
families save an average of $350 a year on heating and air conditioning
bills.

Repairing Public Housing and Making Key Energy Efficiency
Retrofits To HUD-Assisted Housing--This provision provides a total of $6.3
Billion for increasing energy efficiency in federally supported housing
programs.Specifically, it establishes a new program to upgrade HUD-sponsored
low-income housing (for elderly, disabled, and Section 8) to increase energy
efficiency, including new insulation, windows, and frames.

Expanding
Housing Assistance--This provision increases support for several critical housing
programs. It includes $2 Billion for the Neighborhood Stabilization Program to
help communities purchase and rehabilitate foreclosed, vacant
properties.

________________________________More Help for Homeowners
in the Future

Another thing to keep an eye on in the coming weeks is
President Obama's plan to help struggling borrowers before they are faced with a
default on their mortgage.

According to reports, the Obama administration
is discussing plans to help borrowers who are struggling to stay afloat, but who
have not yet fallen behind on their payments. At this point, details are scarce;
however, reports indicate that President Obama is looking to spend approximately
$50 Billion to directly help homeowners before they face foreclosure and
financial disaster.

While this is good news for individual homeowners, it
will likely be good for the housing industry as a whole. That's because,
assisting struggling borrowers before they default should help stop the wave of
foreclosures, which are estimated to top two million this year. That, in turn,
will help stabilize home prices.

The Economic Stimulus Plan is huge, and
impacts a number of industries. I've highlighted some of the major provisions
that may impact you now and in the future.

Disclaimer:All information in this Blog are deemed reliable but not guaranteed. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions."